BU357 Lecture Notes - Lecture 5: Canadian Business, Double Taxation, Independent Contractor
Document Summary
Carrying on business in canada takes into account lots of things: not specifically defined. If not resident engaged in it they will be deemed resident. Place of substantial operations where profits arise from. Ex: non resident offering something for sale through employee in canada is carrying business activity and will be deemed resident. But if youre a supplier selling to a retailer/independent contractor in canada who resells your items- not carrying business. Difference between employee and independent contractor: assessed on case to case basis. Whether party describes itself as an independent contract and supplier. Whether the independent contractor carrier on business in its own name or the suppliers. Whether the independent contractor acts for other suppliers. The greater the independence from supplier and the greater the degree of responsibility, the greater the likelihood that it"s a non-resident supplier whose actually not. Reciprocal treaties to avoid double taxation and tax avoidance.
